Research Update: Sandy Creek Energy's Outlook Revised To Negative After Construction Delay; Recovery Rating Changed To '3' Dec 11
- ID: 2030251
- December 2011
- Standard & Poors
U.S. power plant Sandy Creek Energy sustained damage during a test-firing on Oct. 17, 2011 that has delayed the construction completion date. We are affirming the 'BB-' rating on the project's $835 million first-lien senior secured facility, and revising the outlook to negative from stable. We are also revising the recovery rating to '3' from '2'. The negative outlook reflects uncertainties relating to the cost and scope of the construction delay as well as expected lower gross margins for the project after it begins operations given the reduction in power prices in the ERCOT region as a result of a decline in natural gas prices since the time of the original rating. On Dec. 9, 2011, Standard & Poor's Ratings...
Companies mentioned in this report are: Sandy Creek Energy Associates L.P.
Action: Outlook: Negative
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.